Auditable because all the operations on the blocks in the blockchain, such as adding transactions to the block and voting, counting, and sealing the blocks require that the nodes sign the relevant parts of the block with their secret. Thus, every operation leaves accessor's signature in the block, so every operation is automatically audited. Auditability improves security of the blockchain and resists long range and other types of attacks.

Get invited to our third, Dec. 3rd milestone-based sale

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Welcome to the private, invite-only Second Token Sale for Storecoin #💰

Please take three minutes to apply.

All information will remain confidential with Storecoin, Inc.

Invites will be sent starting in late December 2017.

Are you a resident of the People's Republic of China?

Yes

No

Before you begin, we recommend that you read the latest SEC investor bulletin about buying Blockchain Tokens or App Coins.

As of September 4, 2017, we have concluded that, due to the changing regulatory environment in the People's Republic of China with respect to the distribution of cryptographic tokens generally, Storecoin will not sell tokens to residents of the People's Republic of China.

Although:

a) Storecoin Tokens do not fall within the definition of “security” as stipulated by the Securities Law of the People's Republic of China (as amended).

b) The distribution of the Storecoin Tokens are not considered “illegal fundraising” as defined under the Criminal Law of the People's Republic of China (as amended).

c) Storecoin will comply with the amended Securities Law of China and prohibit residents of the PRC from purchasing Storecoin tokens. If a Chinese person does apply to purchase Storecoin Tokens, such person will not be approved by Storecoin, Inc.

If you are not a resident of the People's Republic of China, we encourage you to re-start the Second Token Sale invite process.

Please read the following before applying for our Second Token Sale:

#1 As a potential Storecoin Token Buyer, I understand that the purpose of the storecoins is to facilitate the provision, utility, and receipt of certain apps and services within a future Storecoin Blockchain.

#2 I understand that my purchase, ownership, receipt, or possession of Storecoin Tokens carry no rights, express or implied, other than the right to use Tokens as a means to enable usage of and interaction with Apps and Services enabled by the Storecoin blockchain, if successfully completed and deployed.

#3 I understand and accept that Tokens do not represent or confer any ownership right or stake, share, security, or equivalent rights, or any right to receive future revenue shares, intellectual property rights or any other form of participation in or relating to a Storecoin blockchain, Storecoin, Inc, and its corporate affiliates, other than any rights relating to the provision and receipt of Services in the Storecoin blockchain or Storecoin app token.

#4 I also understand the Tokens are not intended to be a security, commodity, or any kind of financial instrument.

About Storecoin

Storecoin is a new public blockchain.

With its Dynamic Proof of Stake consensus protocol (DyPoS), Storecoin will deliver free transactions, high-throughput, dynamic economics, decentralized security, and a governance system with built-in checks and balances inspired by the United States Constitution.

Storecoin will become the best digital asset for delivering free, fast, and scalable payments.

Our team has the key insights and experiences in scaling large distributed systems, blockchain technology, token economics, and Governance to succeed.

We have offices in Silicon Valley, South America, Europe, and Asia. We have team members working 24-hours per day, all around the globe.

About Dynamic Proof of Stake

Dynamic Proof of Stake (DyPoS) is the decentralized consensus algorithm invented by Storecoin Inc. to keep transactions free for users.

DyPoS is inspired by the supply and demand principles of Uber Surge Pricing (blockchain economics), checks and balances of the U.S. Constitution (governance), and an encrypted Power of Attorney (scaling).

With DyPoS, Storecoin will bring crypto-powered API calls to app developers around the world.

Dynamic (free) Transactions

Dynamic Validation

Dynamic Block Rewards

Dynamic Security

Dynamic Scaling

Dynamic Governance

We’ve thought deeply about how to incentivize network effects on a new blockchain.

Here’s how Storecoins will be allocated:

33% will be sold in up to six mini token sales to fund protocol development

7% was sold in our First Token Sale in Fall 2017

33% will be allocated to founders and team

Founders have 4 year vesting

Contributors have 2 year vesting

33% will be allocated to incentivize participation in the Storecoin ecosystem

This includes third party developers for the Storecoin blockchain, enterprise organizations who adopt the Storecoin Wallet and integrate storecoin tokens into their enterprise apps, early Validators, early Security Guards, Distribution partners, and future M&A

All incentive-based partners have 4 year vesting

Validators of the Storecoin blockchain have 1 year vesting for their block rewards

Storecoin will only sale up 33% of tokens to the public.

In our Invite-only First Token Sale, 70 Million storecoins, or 7% of all tokens, were sold.

In our Second Token Sale, 30 Million storecoins, or 3% of all tokens total, will be sold to invited and approved buyers. The price per token is $0.0333. Invites to participate will be sent starting December 2017.

Our Second Token Sale will give Storecoin $1 Million in capital to make key hires in blockchain engineering and blockchain security. This enables the project to finish its test network for Dynamic Scaling, Dynamic Validation, and Dynamic (Free Transactions). The output of this sale will be Storecoin releasing its Scaling Paper and its Economics Paper.

Storecoin Token Buyers will receive their tokens as early as 2019.

Storecoin, Inc. will issue buyers either:

ERC20 tokens (that may convert into Storecoin blockchain tokens in the future)

Tokens from the Storecoin blockchain

Tokens from another blockchain such as EOS

The minimum purchase amount in our Second Token Sale is $5,000 USD.

You can buy storecoins through USD Check, USD Wire, Bitcoin and Ethereum.

As of today, this $5,000 USD minimum Storecoin token buy equals:

Ethereum

Bitcoin

Storecoin vs. Other Public Blockchains

What it would cost to buy 1 one-hundredth of a percent (1 basis point) of all tokens minted in the first 10 years for major public blockchains (see footnotes for price assumptions).

The ZCash price of $529 is a snapshot of the price as of December 17th, 2017. The "Filecoin (first hour)" price of $2.25 factors in a 15% discount off of $2.65 (the price during the first hour of the sale) as a result of the 2-year unlocking option. The Tezos price of $0.39 is the effective price paid on the first day of the main sale, taking into account the 20% bonus and an average Bitcoin price of $2,350 on July 1. The EOS price of $8.44 is based on the pre-launch trading price on December 17th, 2017. EOS was assumed to have 5% annual inflation starting at 1 billion tokens.

Do you want to participate in the Storecoin Second Token Sale?

Yes

No

Will you be participating on behalf of yourself or another organization/entity?

As a future Storecoin token owner, would you be interested in earning extra storecoins by staking your tokens for 3+ months to help Validate our future decentralized blockchain consensus? This would make you a founding Validator (miner) for Storecoin. After six months of actively validating, you'd have a vote in Governance, too. You can also apply directly here.

Yes

No

Maybe, send me more information

As a future Storecoin token owner, would you be interested in earning storecoins by helping Secure our blockchain? This would make you a founding Decentralized Security Guard (dGuard). After three months of actively Securing, you'd have a vote in Governance, too. Requirements are experiences in fraud detection, information security, and related fields. You can also apply directly here.

Yes

No

Maybe, send me more information

Thanks for applying to participate in the Storecoin Second Token Sale.

Our team will review your application. Once approved, we'll email you a Token Sale agreement to e-sign and then fund. You'll have 48 hours to fund the contract before your invite expires.

How Storecoin solves for both scalability and decentralization without sharding, off-chain transactions, level 2, etc.

BlockFin is a two-tier network of Validator nodes and Messagenodes, each with specific roles, assemble and validate blocks using a cryptographically secure process. At launch, we expect 5,000+ transactions per second and for throughput to increase as transaction demand increases.

Storecoin is secured by Dynamic Proof of Stake (DyPoS), a new consensus protocol that blends a leaderless consensus algorithm with an equitable economic model whereby all nodes receive a share of every block reward.

Our Team

We have been thinking very long-term about the potential for zero fee, programmable payments.

Chris McCoyFULL-TIME

Creator

16 years experience building internet and blockchain-based technologies. Chairman at Footprint, tools for blockchain ecosystems. Member of the Blockchain Initiative at the World Economic Forum's Fourth Industrial Center. Founded the 501(c)(3) Data4America. Invented YourSports.

Rag BhagavathaFULL-TIME

Chief Technology Officer

Over two decades of building distributed messaging, social networking, and database technologies. Has been working with Storecoin Creator Chris McCoy since 2011. Previous Cloud Infrastructure Engineer @Apple (2011-2012), Frontend Architecture @Cisco WebEx (2006-2011).

Mark Ramberg

Platform Advisor

Antone Johnson

General Counsel

20 years experience as business and technology lawyer, startup advisor, and executive. Antone previously served as VP of global legal affairs at eHarmony and practiced corporate law at Wilson Sonsini Goodrich & Rosati (WSGR).

Digital constitutions are tricky. This is exactly why the US has judicial system - to interpret the constitution. All of this makes me increasingly bullish on long term prospects for@storecoin - modelling governance after US checks and balancespic.twitter.com/Z0ecNXAXy1

Why the name Storecoin?

Storecoin’s governance incentivizes up to 51% of its circulating token supply to be staked by $STORE owners. This enables high levels of Store-of-Value and security.

These incentives also enable up to 49% of the Storecoin circulating token supply to be available for zero-fee, programmable payments (a Medium-of-Exchange).

$STORE is the digital currency minted by the Storecoin blockchain to incentivize the processing, security, scalability, distribution, and governance of its p2p transactions.

DISCLAIMER

Storecoin's data is based upon internal research materially as describedhere andhere. Storecoin does not assure that performance of Storecoin in a real-world use case would match performance exhibited in Storecoin’s research. All other data sourced as provided without further analysis or verification by Storecoin. Comparisons between Storecoin and other identified distributed ledger technology may not be based upon uniform testing standards and procedures.

Nothing herein is intended to be an offer to sell or solicitation of offer to buy, Storecoin tokens or rights to receive Storecoin tokens in the future. In the event that Storecoin conducts an offering of Storecoin tokens (or rights to receive Storecoin tokens in the future), Storecoin will do so in compliance with all applicable laws which may include the Securities Act of 1933 and the rules and regulations promulgated thereunder, as well as applicable state and foreign law. Any offering for sale to US Persons in a regulated transaction will be pursuant to a registration statement qualified by the Securities and Exchange Commission, or an applicable exemption from the registration requirements.

Storecoin aims to become the preferred cryptocurrency for permanently free, fast and scalable payments.

How We're Different

First, we believe zero-fee transactions, decentralization, and high-throughput must co-exist to enable the global adoption of cryptocurrencies.

Second, we believe that they cannot co-exist without new approaches that enable high levels of on-chain security, credibly low inflation, block production that enable flexible economic incentives, and a trusted Governance based on checks-and-balances.

Storecoin intends to integrate these approaches into its Dynamic Proof of Stake protocol (DyPoS).

Our approach is research intensive, security-first, and milestone driven.

Storecoin

It is permissionless to perform work for the protocol but KYC/AML data is required for all types of decentralized workers; this enables future global KYC/AML compliance

achieves censorship resistance because of the growing number of decentralized workers securing the protocol; rewards for workers grow as the number of workers grows; rewards are paid through token inflation capped at 2%/year

The Storecoin Ecosystem Fund launches

Key patents are secured to protect against malicious hard forks outside of Governance

A secure engineering and CI/CD process is built to protect private keys from theft by any and all project contributors

Wallet Released

Wallet distributes private keys

Private keys distributed to owners

ZERO-FEE, P2P PAYMENTS

Storecoin Growth

Up to 20,000 validator node participation

50,000+ transactions per second

Once a threshold of 220 validators are reached, Decentralized Security Guard nodes (dGuards) are added to find bad actors throughout the protocol

Smart contract transactions will remain zero-fee: dWorkers will be paid in $STORE block rewards plus block rewards from the dApp to host its data, secure its transactions, and more

High-throughput Transactions

250,000+ transactions per second

Global Consensus

222,000+ Validator nodes

STORE-AS-A-PLATFORM

Ready for Cash Registers

Using smart contracts, Storecoin can solve for Chargebacks

Merchants wanting to accept zero-fee payments would stake a small percentage of inventory to insure against potential chargebacks

Decentralized Service Agents – sAgents – review and reach consensus on all Chargeback cases. A smart contract then executes

Payment Fraud Supported

Users stake tokens to file fraud tickets

sAgents review fraud tickets from customers

If approved, the fraud is reviewed by the non-profit (the non-profit makes a final determination on early fraud cases)

Fraud refunds are paid for by the Storecoin Security Fund and/or by equally using the stake of all dWorkers

If payment fraud grows, dWorkers and the non-profit are both equally incentivized to fix fraud through Governance

Governance will likely reach consensus on new features and monetary policy to reduce future fraud

Global KYC/AML Compliance

KYC and AML checks are compliant with the laws and national security demands of 190+ countries; this logic is hard coded into all decentralized worker nodes

If the laws of country X prevent transactions from being processed by decentralized nodes in country Y, the Storecoin protocol will support this natively, on chain

A long-term, security-first approach to building globally compliant infrastructure for zero-fee, p2p payments will give Storecoin developers the best opportunity to be embedded into banking and financial infrastructure around the globe.

This is Our Visual Whitepaper

Our Approach

We’re a research-focused, security-first, and milestone-driven team that believes the most optimal design for Storecoin will be found through a community-driven process of public peer review.

Our peer review process will be open, global, and designed to attract the best minds from around the world to strengthen our Governance, Economics, Security, Consensus, and Distribution designs.

Starting in October 2018, our spec for governance will be opened up for peer review to academics, analysts, builders, investors, and more.

Our public peer review process will play an additional role of helping build a trusted network of participants that will form the basis of governance.

In late 2019, we’ll launch Storecoin. By May 2021 – through a formal ratification – we plan to launch a decentralized governance of checks and balances that will coordinate all changes across features, security, key leadership, and monetary policy.

TECHNOLOGY

About Dynamic Proof of Stake (DyPoS)

Overview

Today’s blockchains make tradeoffs between scalability and decentralization. Neither choice is good. For mature crypto use cases, both scalability and decentralization must co-exist.

The tradeoff as it’s currently imagined is rooted in the “create one block at a time” design philosophy embraced by today’s major protocols. Storecoin solves this with its leaderless, high-throughput BlockFin consensus algorithm, designed to process multiple blocks simultaneously in a pipelined fashion.

At the same time, even with innovations, technology alone cannot solve for both scalability and decentralization.

Enter Storecoin’s Dynamic Proof of Stake protocol (DyPoS).

DyPoS combines BlockFin technological innovation with a dynamic economic model and a decentralized Governance of checks and balances. DyPoS’ economic design discourages the formation of large validator pools, which tend to drive today’s protocols towards centralization over time. It also creates different worker types for different responsibilities, so, with a Governance of checks and balances, decision power is never centralized. Every node has a single vote. There is no plutocracy.

Together, technology, economics, and Governance help realize the dream of true decentralization with high scalability.

The Five Decentralized Workers of DyPoS

Decentralized Workers (dWorkers) earn Storecoin tokens as block rewards or interest for running various types of Storecoin nodes on their computers and/or phones to scale, secure, host, and govern the blockchain.

NOTE: The sAgent will launch alongside smart contracts in 2021+

Click to expand

Expected tocome online

Q3-Q4 2019

Q3-Q4 2019

Once a throughput threshold for 300 Validators is reached

Once a security threshold for 220 Validators is reached

By 5/17/2021, four years after Storecoin was formed

The Six Engines Powering DyPoS

Dynamic Proof of Stake is made up of six interdependent engines.

Each engine is state-dependent of the others which is why we call it dynamic.

Dynamic (Zero Fee) Transactions

Transactions are free forever for users, developers, and merchants. This removes the friction and complexity associated with transaction fees. The cost of transaction processing is paid for by annual, dynamic inflation capped at 2%. To ensure security of the network however, a small security bond is required with each transaction, which is returned to the sender, once the transaction is deemed to be legitimate and not a spam or DDoS attack.

Dynamic Validation (BlockFin algorithm)

Dynamic Validation (BlockFin algorithm)

A leaderless, parallel block assembly and validation process ensures continuous transaction finalization, which results in high throughput. To facilitate this, a two-tier network consisting of Validators and Messagenodes is designed, so a large number of validators can participate in the consensus process. This makes BlockFin a high throughput and a highly decentralized consensus engine. The Validators and Messagenodes share the block rewards proportional to their work for every block they help assemble and validate. This is a breakthrough in the economics of consensus algorithms.

Dynamic Block Rewards

Dynamic Block Rewards

Dynamic, yearly token inflation capped at 20 Million $STORE per year – or 2% of the genesis token supply – pays out block rewards to four type of decentralized workers: Validators, Masternodes, dGuards, and Govnodes. Block rewards are determined by the percentage of staking amongst the decentralized workforce. For example if 51% of the circulating token supply is staked by dWorkers, inflationary rewards will be 2%. Rewards are paid out as follows: 80% participate in consensus, store the data, and scale the blockchain; 20% for on-chain security, on-chain governance, and off-chain blockchain operations – forever.

Dynamic Security

Dynamic Security

Decentralized Security Guards (dGuards) secure the protocol by running full nodes to monitor all transactions and dWorker activity. They're rewarded with 75% of the burnt stake or bond from the bad actors. 25% is paid to the Security Fund to help cover future payment fraud. Also, a Threat Level System determines the prices for all network activity, making the cost of attacking the network increasingly greater as the Threat Levels increase. Finally, security bonds are required to be sent with each transaction. This mitigates transaction spam and DDoS attacks.

Scaling with eAgents (Level 2 scaling)

Scaling with eAgents (Level 2 scaling)

As the number of validators increases the block validation process slows down. In order to scale the transaction throughput and make block validation instant with unlimited validator participation, Storecoin introduces a special type of worker called the encrypted agent, or eAgent. eAgents validate blocks on behalf of their configured validators. Hundreds of eAgents are run alongside each other in secure containers called Masternodes thus alleviating the need for expensive network calls. So, the blocks are assembled and validated in constant time independent of the number of validators participating in the network. This brings scaling and decentralization, which are typically at the two opposite ends, together.

Governance with Checks and Balances

Governance with Checks and Balances

Storecoin Governance is inspired by the checks and balances of the United States Constitution. Governance ensures that a) there is no centralization of power for protocol-level changes, b) security matters most, and c) monetary policy requires Governance approval so there is no Fed-like system. For the first four years, Storecoin will have executive power over the blockchain. After four years, Governance will decide all changes. Governance itself will be censorship resistant as the voting and messaging powering the checks and balances-based Governance will be hosted in a dApp by Govnodes around the world.

Dynamic (Zero Fee) Transactions

Dynamic (Zero Fee) Transactions

Transactions are free forever for users, developers, and merchants. This removes the friction and complexity associated with transaction fees. The cost of transaction processing is paid for by annual, dynamic inflation capped at 2%. To ensure security of the network however, a small security bond is required with each transaction, which is returned to the sender, once the transaction is deemed to be legitimate and not a spam or DDoS attack.

Dynamic Validation (BlockFin algorithm)

Dynamic Validation (BlockFin algorithm)

A leaderless, parallel block assembly and validation process ensures continuous transaction finalization, which results in high throughput. To facilitate this, a two-tier network consisting of Validators and Messagenodes is designed, so a large number of validators can participate in the consensus process. This makes BlockFin a high throughput and a highly decentralized consensus engine. The Validators and Messagenodes share the block rewards proportional to their work for every block they help assemble and validate. This is a breakthrough in the economics of consensus algorithms.

Dynamic Block Rewards

Dynamic Block Rewards

Dynamic, yearly token inflation capped at 20 Million $STORE per year – or 2% of the genesis token supply – pays out block rewards to four type of decentralized workers: Validators, Masternodes, dGuards, and Govnodes. Block rewards are determined by the percentage of staking amongst the decentralized workforce. For example if 51% of the circulating token supply is staked by dWorkers, inflationary rewards will be 2%. Rewards are paid out as follows: 80% participate in consensus, store the data, and scale the blockchain; 20% for on-chain security, on-chain governance, and off-chain blockchain operations – forever.

Dynamic Security

Dynamic Security

Decentralized Security Guards (dGuards) secure the protocol by running full nodes to monitor all transactions and dWorker activity. They're rewarded with 75% of the burnt stake or bond from the bad actors. 25% is paid to the Security Fund to help cover future payment fraud. Also, a Threat Level System determines the prices for all network activity, making the cost of attacking the network increasingly greater as the Threat Levels increase. Finally, security bonds are required to be sent with each transaction. This mitigates transaction spam and DDoS attacks.

Scaling with eAgents (Level 2 scaling)

Scaling with eAgents (Level 2 scaling)

As the number of validators increases the block validation process slows down. In order to scale the transaction throughput and make block validation instant with unlimited validator participation, Storecoin introduces a special type of worker called the encrypted agent, or eAgent. eAgents validate blocks on behalf of their configured validators. Hundreds of eAgents are run alongside each other in secure containers called Masternodes thus alleviating the need for expensive network calls. So, the blocks are assembled and validated in constant time independent of the number of validators participating in the network. This brings scaling and decentralization, which are typically at the two opposite ends, together.

Governance with Checks and Balances

Governance with Checks and Balances

Storecoin Governance is inspired by the checks and balances of the United States Constitution. Governance ensures that a) there is no centralization of power for protocol-level changes, b) security matters most, and c) monetary policy requires Governance approval so there is no Fed-like system. For the first four years, Storecoin will have executive power over the blockchain. After four years, Governance will decide all changes. Governance itself will be censorship resistant as the voting and messaging powering the checks and balances-based Governance will be hosted in a dApp by Govnodes around the world.

Dynamic (Zero Fee) Transactions

Transactions are free forever for users, developers, and merchants. This removes the friction and complexity associated with transaction fees. The cost of transaction processing is paid for by annual, dynamic inflation capped at 2%. To ensure security of the network however, a small security bond is required with each transaction, which is returned to the sender, once the transaction is deemed to be legitimate and not a spam or DDoS attack.

Dynamic Validation (BlockFin algorithm)

A leaderless, parallel block assembly and validation process ensures continuous transaction finalization, which results in high throughput. To facilitate this, a two-tier network consisting of Validators and Messagenodes is designed, so a large number of validators can participate in the consensus process. This makes BlockFin a high throughput and a highly decentralized consensus engine. The Validators and Messagenodes share the block rewards proportional to their work for every block they help assemble and validate. This is a breakthrough in the economics of consensus algorithms.

Dynamic Block Rewards

Dynamic, yearly token inflation capped at 20 Million $STORE per year – or 2% of the genesis token supply – pays out block rewards to four type of decentralized workers: Validators, Masternodes, dGuards, and Govnodes. Block rewards are determined by the percentage of staking amongst the decentralized workforce. For example if 51% of the circulating token supply is staked by dWorkers, inflationary rewards will be 2%. Rewards are paid out as follows: 80% participate in consensus, store the data, and scale the blockchain; 20% for on-chain security, on-chain governance, and off-chain blockchain operations – forever.

Dynamic Security

Decentralized Security Guards (dGuards) secure the protocol by running full nodes to monitor all transactions and dWorker activity. They're rewarded with 75% of the burnt stake or bond from the bad actors. 25% is paid to the Security Fund to help cover future payment fraud. Also, a Threat Level System determines the prices for all network activity, making the cost of attacking the network increasingly greater as the Threat Levels increase. Finally, security bonds are required to be sent with each transaction. This mitigates transaction spam and DDoS attacks.

Scaling with eAgents (Level 2 scaling)

As the number of validators increases the block validation process slows down. In order to scale the transaction throughput and make block validation instant with unlimited validator participation, Storecoin introduces a special type of worker called the encrypted agent, or eAgent. eAgents validate blocks on behalf of their configured validators. Hundreds of eAgents are run alongside each other in secure containers called Masternodes thus alleviating the need for expensive network calls. So, the blocks are assembled and validated in constant time independent of the number of validators participating in the network. This brings scaling and decentralization, which are typically at the two opposite ends, together.

Governance with Checks and Balances

Storecoin Governance is inspired by the checks and balances of the United States Constitution. Governance ensures that a) there is no centralization of power for protocol-level changes, b) security matters most, and c) monetary policy requires Governance approval so there is no Fed-like system. For the first four years, Storecoin will have executive power over the blockchain. After four years, Governance will decide all changes. Governance itself will be censorship resistant as the voting and messaging powering the checks and balances-based Governance will be hosted in a dApp by Govnodes around the world.

The consensus algorithm underneath DyPoS is BlockFin

Why Storecoin's BlockFin Consensus Algorithm Matters

In the late 1860’s, gasoline was a waste product thrown into rivers and fields by the oil refineries. It was John Rockefeller’s Standard Oil that invented a way to refine the waste and turn it into gasoline. This invention gave rise to the automobile industry and beyond.

Today, public blockchains have their own waste: chain forks. Since the longest chain wins in consensus, chain forks become wasted compute (and electricity). This results in lower transaction throughput.

How? BlockFin moves away from the “winning node creates the new block” paradigm to a new paradigm where all nodes assemble transactions into pre-created empty blocks while validating them in multiple, asynchronous stages. There are no chain forks in BlockFin because there is no “add-one-block-at-a-time” construct. The blocks are finalized in a pipeline.

Storecoin calls this invention “fork-tolerant”.

Fork-tolerance is how Storecoin achieves high-throughput with true decentralization.

The 3 Principles of BlockFin

BlockFin allows the Storecoin blockchain to achieve high-throughput and true decentralization without the need for sharding, off chain transactions, level 2 scaling, etc.

Comparing the inflation and emission schedules of major p2p protocols

Monetary policy is the most difficult to change in Storecoin’s Governance of checks and balances.

The economics of DyPoS

The 5 Economic Goals of DyPoS

#1

Increase protection against an attack on DyPoS with added decentralization

#2

Incentivize for staking which delivers security and Store-of-Value

#3

Incentivize for profitability among different node types

#4

Incentivize nodes for providing additional security including extra bonuses for length of staking, size of stake, and uptime

#5

Incentivize an environment where nodes continually search for more efficient forms of storage and bandwidth capacity

Over time, these incentives will drive down the cost of storage, bandwidth, and CPU resources enabling Storecoin to become the most efficient and scalable public blockchain not just for zero-fee p2p transactions, but for p2p hosting of any data or service built on top – including smart contracts, dApps, and more.

How incentives drive long-term efficiency for the Storecoin blockchain

Click to expand

Bitcoin’s Proof of Work incentivizes for the development of the cheapest forms of energy/ electricity and faster/cheaper ASICs.

Storecoin’s Dynamic Proof of Stake incentives for the development of the cheapest forms of storage, memory, bandwidth, CPU, and more.

How STORE is both a Store-of-Value and a Medium-of-Exchange

Storecoin uses both economic rewards and caps on rewards to incentivize for 51% of the blockchain’s circulating token supply to be utilized as a Store-of-Value (blockchain security) while 49% is utilized as zero-fee, programmable payments infrastructure (Medium-of-Exchange).

How Store-of-Value is achieved on Storecoin

A maximum of 20 Million $STORE tokens, or up to 2% of the genesis token supply, is minted annually as new token inflation to keep payments zero-fee for buyers and sellers transacting with $STORE.

These inflationary rewards are pegged to the percentage of the circulating token supply, incentivizing up to 51% of the supply to be staked as a secure Store-of-Value.

As inflationary rewards grow, more dWorkers will stake. This grows protocol network effects, on-chain security, and Store-of-Value properties. As the price of $STORE grows, the total contract value of all tokens staked grows. As the total contract value grows, Storecoin will become even more of a secure Store-of-Value.

How Dynamic Block Rewards are Allocated

Decentralized Workers earn up to 20 Million $STORE tokens per year – or 2% of the total authorized token supply – to process computations, perform work, host data, and supply compute to the blockchain. Rewards are pegged to the total amount of circulating token supply staked by dWorkers. 80% are paid for participating​ in consensus, storing ​data, and scaling ​the blockchain. 20% is shared between security, governance, processing power, core blockchain operations, and more.

Click to expand

NOTE: Monetary policy can evolve through Storecoin’s Governance of checks and balances

How the zero-fee STORE token is distributed to the global masses

To get distribution into cash registers, App Stores, digital wallets, and banking infrastructure around the world, Storecoin will cut $STORE distribution partners into its block reward.

Instead of getting paid by transaction fees, banking and financial partners will get paid by $STORE tokens. This is a major economic innovation across traditional finance and cryptocurrency.

Making programmable, p2p payments zero-fee while still generating revenue for its banking and financial partners is how Storecoin competes with VISA-like networks and beyond.

ACQUIRERS/ PROCESSORS

CARD NETWORKS

BANK/ ISSUES

GATEWAYS

WALLETS

*chart from Business Insider

dWorkers have consumer-friendly tools to make long-term economic decisions about staking

Click to expand

Why will consumers spend their $STORE if it’s going up in value? Why will merchants accept $STORE if it’s going down?

Removing the transaction fee will always make it cheaper for buyers to purchase using $STORE and more profitable for sellers to accept $STORE.

Click to expand

Developers and Merchants have simple tools to help make economic decisions to accept $STORE

All DyPoS economics will release in the Economics Paper

How DyPoS is secured

The Storecoin Threat Level System

The Storecoin Threat Level System powers real-time market prices for the Six Engines of DyPoS. The System threat level algorithmically updates as transaction volumes rise and fall. As threat levels rise, the cost of spam and attacks rise too.

Severe

The network is under attack (DDoS, spam), a large volumes of incoming transactions, the number of validators online dropped below BFT threshold, and validator misbehavior is observed by dGuards during consensus

High

The nodes are reporting imminent attack (DDoS, spam), transaction volume is unusually large, number of validators online is nearing BFT threshold, and consensus rounds slow down due to disagreements

Elevated

Signs of attack (elevated number of invalid transactions), not all validators are currently online, and consensus rounds are repeated due to disagreements

Guarded

Unusual number of transactions and not all validators are currently online

Low

No known threats

The Cost of Cheating > Ever Winning

Storecoin’s BlockFin consensus protocol is Byzantine Fault Tolerant (BFT) and implements slashing (confiscating or burning the deposit) as a punitive measure for misbehaving entities in the system. As the Threat Levels increase, so do the prices for getting caught attacking the network or deviating from protocol. These dynamic Threat Levels ensure that the cost of getting caught will be greater than winning.

dGuards “find the rats” for Storecoin

Storecoin’s decentralized security guards (dGuards) patrol the network continuously and mitigate the chances of attackers winning. If dGuards reach consensus on an attack, they are rewarded with 100% of the burnt stake or burnt stake for all bad actors and/or transactions. Storecoin’s Security Branch makes the final determination on tickets filed by dGuards before punitive measures are taken.

The Network Effects of Security and DyPoS

The strength of Dynamic Proof of Stake is that it aligns the economic incentives of all stakeholders for more staking, therefore more worker participation, therefore more protocol decentralization, therefore more security.

Staking incentivizes for decentralization and on-chain security

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How Dynamic Security Works(with dGuards)

Decentralized Security Guards, or dGuards, secure the protocol by running full nodes to monitor all transactions and dWorker activity. They're rewarded with 75% of the burnt stake or bond from the found “bad” actors. The other 25% is paid to a security fund that refunds found payment fraud on the blockchain (ETA 2021).

dGuards run full nodes and download the latest blockchain state.

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dGuards are a final set of checks and balances for blockchain security

Why Governance matters(public peer review begins in October 2018)

Governance helped trade and commerce shape the world

Simply, Governance is a rules engine that enforces contracts and laws which in return injects trust into markets that require trust – markets like trade and commerce. History has shown us that as trust increases, the amount of trade and commerce increases too.

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The problems with blockchain Governance today

For today’s public blockchains to move past prototypes and low usage dApps – to where entities trust a decentralized blockchain enough to process $10 Million+ of utility-based daily transaction volume – blockchains need an enforceable rules engine that has no centralization of power, that key network participants trust, and that is censorship resistant.

Public blockchains need a democratic and trusted Governance

To shape the future of trade and commerce, blockchains need an enterprise-grade Governance that is trusted, enforceable, and reaches finality in a democratic process.

About Storecoin’s Governance(public peer review begins in October 2018)

Storecoin will be supported by a decentralized governance of checks and balances that can be understood and trusted by the largest organizations in the world.

Storecoin’s decentralized and censorship resistant governance will coordinate an unlimited number of nodes and participants to reach consensus on decisions related to new features, non-profit leadership, and monetary policy. The Storecoin non-profit will attempt to ratify its decentralized governance of checks and balances in May 2021.

How Storecoin’s Governance compares

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"It is much more important to kill bad bills than to pass good ones."

- Calvin Coolidge, 1910

Separation of Powers in Storecoin’s Governance

Governance is inspired by the checks and balances of the United States Constitution. Storecoin’s Governance ensures that:

1) There is no centralization of power for protocol-level changes

2) Security matters most

3) Monetary Policy requires Governance approval (there is no Fed)

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The 10 Principles of Storecoin’s Governance

Storecoin’s Governance takes a system that has been vetted for hundreds of years – the U.S. Constitution – and removes most of the politics by replacing it with technology while also ensuring censorship resistance, absence of collusion, and decentralization of power.

1 Any $STORE owner can participate in Governance by staking and becoming a dWorker – but they must vote

2 Only one vote per dWorker – no matter the size of their stake (there is no plutocracy) (there is no delegation)

3 Any issue on a ballot will reach finality in a democratic voting process of checks and balances

4 Change is possible through Governance but change is difficult as each dBranch chamber has different incentives

6 Only the Judicial Branch can propose Monetary Policy changes for a vote by the dBranch (there is no Fed)

7 The Community has a path to create change – even when not having a vote in Governance (a democracy)

8 To secure the network when it’s at Severe Threat Level, security-level fixes can be made outside of Governance

9 Hard forks can be decided by Governance but any hard fork outside of Governance will be aggressively defended

10 Storecoin can operate forever using a 1% block reward endowment and a +1,000-year Treasury Schedule

Organizational Chart of Storecoin’s Governance

For the first four years – until 5/21/2021 – the Storecoin organization has executive power over the blockchain. After, Governance will decide all changes to features, leadership, and Monetary Policy.

Between now and 5/21/2021, Storecoin’s peer review process will serve as an informal system of checks and balances​ for changes to the protocol. The Storecoin non-profit will attempt to ratify its decentralized governance in May 2021. Its first Chief Executive Officer will be elected, too.

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How Checks and Balances Work in Storecoin

Change is possible, Change is democratic, but change is hard. Also, fixing Security breaches can happen outside of a dBranch vote.

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How Governance is Hired(and fired)

Checks and Balances prevent collusion, determine how key leadership is hired and fired, and keep it permissionless for dWorkers to participate (but they must KYC/AML check with governance and be limited to only one node per individual or company/entity). Additionally, dWorkers must vote and will be slashed if they do not. Abstaining is a vote.

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How Committees Work in Governance

Committees review, discuss, and, if needed, modify Change Proposals from all parties except Judicial. If 51% of the committee votes “yes” on a Proposal, then it’s set for a quarterly ballot by Governance. dWorkers can join up to 3 committees maximum, must vote, and there are no committee chairs. The Chief Executive Officer determines the committees for every new Proposal. The result of a committee vote may be to move the Proposal to a new committee. If an approved Proposal is economic or monetary policy-related, it needs Judicial Branch approval before a dBranch vote.

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How Every Storecoin Token Owner Can Create Change

(Democracy)

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How decentralization drives democracy on the Storecoin blockchain

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The Governance enables any issue to reach finality with consensus

How the dBranch can overrule the non-profit

Simply put, Governance in blockchain limits the centralized power of core developer teams. Storecoin’s Governance spreads influence to the far edges of the network to ensure the core developer team can be overruled via checks and balance that makes change difficult, but possible to achieve.

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How Checks and Balances work for monetary policy

In Storecoin’s Governance, there is no Fed-like body with unilateral decision-making power over monetary policy. Instead, there is a Judicial Branch responsible for the ongoing study of protocol economics. For monetary policy to change, the Judicial Branch must first reach consensus amongst themselves. Then, the Judicial Branch can formally recommend the change for a vote by the dBranch.

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Monetary policy is the most difficult to change in Storecoin’s Governance of checks and balances.

Change in Governance is possible but it becomes more difficult as protocol network effects and Store-of-Value properties grow

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How Approved Changes are Deployed to Storecoin Nodes

All new feature proposals must be accepted through Storecoin’s governance of checks and balances. Under no circumstances will the Storecoin non-profit or other maintainers of the Storecoin software be able to unilaterally decide on pushing software changes. If they refuse to act on accepted changes from Governance, then the Judicial Branch has the power to fire the non-profit leadership, with cause.

Change request flow in Storecoin’s governance process

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Storecoin will host a GovCon in 2021 to ratify its governance and elect its founding Executive Director, Chief Security Officer, and Judicial Branch members.

The first GovCon will take place in May 2019 in San Francisco. Research papers will be accepted to extend ideas for the protocol across Governance, Economics, Security, Consensus, and more. These papers will serve as the foundation for the first set of proposed changes to the Storecoin p2p protocol.

The Charter will release in its upcoming Governance Paper

Infrastructure for censorship resistant Governance

How Governance Would Look – if not censorship resistant

The centralized way, using an app hosted by a centralized entity

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How a Censorship Resistant Storecoin Governance Works

The decentralized way with a dApp hosted by Govnodes worldwide

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dWorkers have a consumer-friendly dApp to study new Change Proposals, discuss, debate, and then vote

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Ongoing Research in Governance

Launching an annual conference for Storecoin’s governance

The decentralized process of electing Storecoin’s first Executive Director, Chief Security Officer, and Judicial Branch members

Completely eliminating the threat of collusion in governance through technologies like zkSNARKs for Govnodes

Architecture for how Storecoin’s Govnode technology can become Platform APIs for both apps and dApps to have their own checks and balances governance

How Storecoin’s checks and balances-type of governance could bring a decentralized democracy to a centralized global company like Facebook

dWorkers will KYC check with Governance

Why? Because governments around the world won't trade their finance and banking laws for the innovation potential of p2p payments.

With KYC/AML data for its decentralized workers, Storecoin software nodes will be regulatory-compliant on a country-by-country-basis giving the Storecoin blockchain a unique advantage to being embedded in traditional banking and financial infrastructure around the world.

How global KYC/AML compliance grows adoption

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How Storecoin incentivizes adoption

Storecoin’s Path to Early Adoption

Storecoin will succeed by convincing web and mobile application developers to incentivize their users to get paid $STORE tokens for taking key actions inside of their apps (paid API calls).

Then, to accept $STORE for in-app payments.

Storecoin will become the native, zero-fee cryptocurrency for one of the as-yet-uncompleted pillars of internet activity: HTTP status code 402 - payment required. The 402 status code is reserved for the internet browser to one day natively send and receive digital cash or micropayments.

We call this architecture for the internet WebC – a zero-fee and crypto-powered approach to native payments infrastructure for the internet.

WebC Simply Explained – a crypto-powered internet

An overview of the zero-fee, $STORE cryptocurrency enhanced internet that can unlock huge categories of native web innovation and commerce

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The Network Effects of Storecoin and Trust

All money is trust, cryptocurrency included. Money works as a medium of exchange because people believe in it. If it won’t be accepted in a transaction, then it has no value. For cryptocurrency to develop trust, it needs to be used by people. TheWallet attempts to solve trust for the Storecoin cryptocurrency.

How trust in $STORE grows $STORE into new environments

(into new platforms for programmable money)

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What apps can benefit from Storecoin’s WebC?

Any app that needs to grow its user base faster, accelerate the adoption of key user actions, and introduce payments with zero fees will benefit by developing on top of the Storecoin blockchain.

Where Storecoin will get adoption

Apps where sign up is a key user action

Apps where successful onboarding is a key user action

Apps where inviting other users is key to user growth

Apps with a need for micropayments

Enterprise apps solving specific use cases like scheduling and e-signatures

User-generated content and editing sites

Consumer social networks

Enterprise messaging apps

Enterprise ERP systems

Social games

How ecosystem partners help Storecoin grow

The Storecoin Developer Ecosystem

A coalition of organizations that have entered into long-term relationships with Storecoin as its exclusive cryptocurrency to be integrated into enterprise and consumer-facing apps.

The Storecoin Ecosystem Fund

Storecoin’s Ecosystem Fund will make equity-based investments into application-based companies that may be early Storecoin developers. From Storecoin’s 33% Incentivization Pool, developers will also be awarded STORE tokens to kickstart their Wallet networks. Storecoin can also airdrop tokens into the Wallets of users from its ecosystem funded companies, further growing the use of STORE.

As of September 4, 2017, we have concluded that, due to the changing regulatory environment in the People's Republic of China with respect to the distribution of cryptographic tokens generally, Storecoin will not sell tokens to residents of the People's Republic of China.

Although:

a) Storecoin Tokens do not fall within the definition of “security” as stipulated by the Securities Law of the People's Republic of China (as amended).

b) The distribution of the Storecoin Tokens are not considered “illegal fundraising” as defined under the Criminal Law of the People's Republic of China (as amended).

c) Storecoin will comply with the amended Securities Law of China and prohibit residents of the PRC from purchasing Storecoin tokens. If a Chinese person does apply to purchase Storecoin Tokens, such person will not be approved by Storecoin, Inc.

If you are not a resident of the People's Republic of China, we encourage you to re-start the Second Token Sale invite process.

Please read the following before applying for our Second Token Sale:

#1 As a potential Storecoin Token Buyer, I understand that the purpose of the storecoins is to facilitate the provision, utility, and receipt of certain apps and services within a future Storecoin Blockchain.

#2 I understand that my purchase, ownership, receipt, or possession of Storecoin Tokens carry no rights, express or implied, other than the right to use Tokens as a means to enable usage of and interaction with Apps and Services enabled by the Storecoin blockchain, if successfully completed and deployed.

#3 I understand and accept that Tokens do not represent or confer any ownership right or stake, share, security, or equivalent rights, or any right to receive future revenue shares, intellectual property rights or any other form of participation in or relating to a Storecoin blockchain, Storecoin, Inc, and its corporate affiliates, other than any rights relating to the provision and receipt of Services in the Storecoin blockchain or Storecoin app token.

#4 I also understand the Tokens are not intended to be a security, commodity, or any kind of financial instrument.

About Storecoin

Storecoin is a new public blockchain.

With its Dynamic Proof of Stake consensus protocol (DyPoS), Storecoin will deliver free transactions, high-throughput, dynamic economics, decentralized security, and a governance system with built-in checks and balances inspired by the United States Constitution.

Storecoin will become the best digital asset for delivering free, fast, and scalable payments.

Our team has the key insights and experiences in scaling large distributed systems, blockchain technology, token economics, and Governance to succeed.

We have offices in Silicon Valley, South America, Europe, and Asia. We have team members working 24-hours per day, all around the globe.

About Dynamic Proof of Stake

Dynamic Proof of Stake (DyPoS) is the decentralized consensus algorithm invented by Storecoin Inc. to keep transactions free for users.

DyPoS is inspired by the supply and demand principles of Uber Surge Pricing (blockchain economics), checks and balances of the U.S. Constitution (governance), and an encrypted Power of Attorney (scaling).

With DyPoS, Storecoin will bring crypto-powered API calls to app developers around the world.

Dynamic (free) Transactions

Dynamic Validation

Dynamic Block Rewards

Dynamic Security

Dynamic Scaling

Dynamic Governance

We’ve thought deeply about how to incentivize network effects on a new blockchain.

Here’s how Storecoins will be allocated:

33% will be sold in up to six mini token sales to fund protocol development

7% was sold in our First Token Sale in Fall 2017

33% will be allocated to founders and team

Founders have 4 year vesting

Contributors have 2 year vesting

33% will be allocated to incentivize participation in the Storecoin ecosystem

This includes third party developers for the Storecoin blockchain, enterprise organizations who adopt the Storecoin Wallet and integrate storecoin tokens into their enterprise apps, early Validators, early Security Guards, Distribution partners, and future M&A

All incentive-based partners have 4 year vesting

Validators of the Storecoin blockchain have 1 year vesting for their block rewards

Storecoin will only sale up 33% of tokens to the public.

In our Invite-only First Token Sale, 70 Million storecoins, or 7% of all tokens, were sold.

In our Second Token Sale, 30 Million storecoins, or 3% of all tokens total, will be sold to invited and approved buyers. The price per token is $0.0333. Invites to participate will be sent starting December 2017.

Our Second Token Sale will give Storecoin $1 Million in capital to make key hires in blockchain engineering and blockchain security. This enables the project to finish its test network for Dynamic Scaling, Dynamic Validation, and Dynamic (Free Transactions). The output of this sale will be Storecoin releasing its Scaling Paper and its Economics Paper.

Storecoin Token Buyers will receive their tokens as early as 2019.

Storecoin, Inc. will issue buyers either:

ERC20 tokens (that may convert into Storecoin blockchain tokens in the future)

Tokens from the Storecoin blockchain

Tokens from another blockchain such as EOS

The minimum purchase amount in our Second Token Sale is $5,000 USD.

You can buy storecoins through USD Check, USD Wire, Bitcoin and Ethereum.

As of today, this $5,000 USD minimum Storecoin token buy equals:

Ethereum

Bitcoin

Storecoin vs. Other Public Blockchains

What it would cost to buy 1 one-hundredth of a percent (1 basis point) of all tokens minted in the first 10 years for major public blockchains (see footnotes for price assumptions).

The ZCash price of $529 is a snapshot of the price as of December 17th, 2017. The "Filecoin (first hour)" price of $2.25 factors in a 15% discount off of $2.65 (the price during the first hour of the sale) as a result of the 2-year unlocking option. The Tezos price of $0.39 is the effective price paid on the first day of the main sale, taking into account the 20% bonus and an average Bitcoin price of $2,350 on July 1. The EOS price of $8.44 is based on the pre-launch trading price on December 17th, 2017. EOS was assumed to have 5% annual inflation starting at 1 billion tokens.

Do you want to participate in the Storecoin Second Token Sale?

Yes

No

Will you be participating on behalf of yourself or another organization/entity?

As a future Storecoin token owner, would you be interested in earning extra storecoins by staking your tokens for 3+ months to help Validate our future decentralized blockchain consensus? This would make you a founding Validator (miner) for Storecoin. After six months of actively validating, you'd have a vote in Governance, too. You can also apply directly here.

Yes

No

Maybe, send me more information

As a future Storecoin token owner, would you be interested in earning storecoins by helping Secure our blockchain? This would make you a founding Decentralized Security Guard (dGuard). After three months of actively Securing, you'd have a vote in Governance, too. Requirements are experiences in fraud detection, information security, and related fields. You can also apply directly here.

Yes

No

Maybe, send me more information

Thanks for applying to participate in the Storecoin Second Token Sale.

Our team will review your application. Once approved, we'll email you a Token Sale agreement to e-sign and then fund. You'll have 48 hours to fund the contract before your invite expires.

Nothing herein is intended to be an offer to sell or solicitation of offer to buy, Storecoin tokens or rights to receive Storecoin tokens in the future. In the event that Storecoin conducts an offering of Storecoin tokens (or rights to receive Storecoin tokens in the future), Storecoin will do so in compliance with all applicable laws which may include the Securities Act of 1933 and the rules and regulations promulgated thereunder, as well as applicable state and foreign law. Any offering for sale to US Persons in a regulated transaction will be pursuant to a registration statement qualified by the Securities and Exchange Commission, or an applicable exemption from the registration requirements.

Get invited to our third, milestone-based Token Event

Can my country participate? If you are located in the United States, are an “accredited investor” for the purposes of federal securities regulation, and otherwise not restricted by law from participating, you may participate in the offering. If you are a Non-US Person located in another country, you may not be subject to the same restrictions, however, you will need to comply with applicable laws and regulations in your country which in some cases restrict or preclude our offering and your purchase of STORE. Our subscription process will include more specifics with respect to countries included or excluded from the Offering.

An accredited investor includes:

Any person that:

Earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year. This may include income from cryptocurrency.

OR

Has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence). This may includes ownership of cryptocurrency, including not yet released ICOs and token projects.

Any entity such as banks, partnerships, corporations, nonprofits and trusts who:

Has total assets in excess of $5 million but were not formed to specifically for the purchase of the subject securities. This includes ownership of cryptocurrency.

OR

Any entity in which all of the equity owners are accredited investors. This includes ownership of cryptocurrency.